I heard of an interesting tactic re finance when you have just finished a trade and proceeds realised, but you are going to be going inconditional on another one soon in the next month or so.
The financing of trading properties attracts high application fee's in many cases in addition to a higher interest rate.
But its the fee's that can be the exhorbitant cost.
An option I heard about is not to pay the bank back when you complete a deal.
But to instead put the money in a term deposit and swap the security from the house just sold to the term deposit.
What do people think of this tactic, is it workable in NZ ?
(The cost saving being the difference in rates vs. Another application fee)
The financing of trading properties attracts high application fee's in many cases in addition to a higher interest rate.
But its the fee's that can be the exhorbitant cost.
An option I heard about is not to pay the bank back when you complete a deal.
But to instead put the money in a term deposit and swap the security from the house just sold to the term deposit.
What do people think of this tactic, is it workable in NZ ?
(The cost saving being the difference in rates vs. Another application fee)
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